Daily News: February 28, 2012

US Capital Partners Secures $5 Million for Laboratory Services Firm


US Capital Partners said that it has secured a $5 million credit facility for a global provider of clinical diagnostic testing services, 30% more than the company’s previous facility.

This financing comprised a $4 million accounts receivable line of credit and a $1 million term loan to fund growing working capital needs and support expansion. US Capital secured scalable financing for the company, as well as removed the standard lock-box provisions usually required for a multi-million dollar line of credit of this type.

Founded in 1996, this expanding laboratory services firm provides clinical diagnostic testing services to thousands of clients in the U.S. and abroad.

US Capital said the company’s business was expanding, with possible acquisition opportunities on the horizon, but it was locked in an inappropriate small and fixed financing structure, with limited availability and scope for growth. The company had a federal tax lien and payment plan that made the deal unattractive to commercial banks. The strict regulations surrounding its industry also rendered traditional “lock-box” arrangements impractical, adding still a further layer of complexity to the situation.

US Capital Partners is a private investment bank, direct lender, co-lender and lead financial arranger that specializes in asset-based debt for small- to middle-market private and public companies.